What Is Fuse and Who Founded It?
Fuse is an AI-native loan origination system (LOS) built for the modern lending era. Co-founders Andres Klaric and Marc Escapa launched the company after three years of running an automotive lending startup. By 2023, they recognized that large language models (LLMs) could do far more than power chatbots. Consequently, they pivoted their entire business to tackle one of the most overlooked pain points in financial services: outdated loan origination infrastructure.
Klaric, originally from Bolivia, and Escapa, a Spanish immigrant, bring a global perspective to a deeply American problem. Together, they are building technology that directly serves the backbone of community lending across the United States.
The Problem With Legacy Loan Origination Systems
What Is a Loan Origination System?
A loan origination system manages the entire loan life cycle. It handles everything from the initial application and credit underwriting to final approval and fund disbursement. In short, it is the central nervous system of any lending institution.
Why Legacy LOS Platforms Are Failing Credit Unions
Despite their critical role, traditional LOS platforms are notoriously slow, expensive, and rigid. Integration alone can take up to a year. Moreover, these contracts often run for multiple years and carry steep costs. As a result, credit unions find themselves locked into outdated systems with no affordable way out.
Furthermore, these legacy platforms offer little flexibility for adopting emerging technologies like artificial intelligence. Credit unions, therefore, fall further behind their larger banking counterparts who have more resources to invest in modern infrastructure.
How Fuse Uses AI to Transform Lending
AI Agents That Automate the Hard Parts
Fuse replaces manual, time-consuming workflows with intelligent AI agents. These agents help lenders process higher loan volumes without adding headcount. Additionally, they automate underwriting decisions, reducing the time and cost of evaluating each loan application.
Faster Onboarding, Lower Operational Costs
Unlike legacy systems that require months of integration work, Fuse is designed for rapid deployment. The platform significantly cuts operational costs while improving accuracy and speed across the entire lending workflow. Consequently, credit unions can serve more members with fewer resources.
The $25M Series A: Who Backed Fuse?
On March 16, 2026, Fuse announced a $25 million Series A funding round. Footwork led the round, with participation from Primary Venture Partners, NextView Ventures, and Commerce Ventures.
Nikhil Basu Trivedi, co-founder and general partner at Footwork, shared why he backed the startup. He pointed out that more than 4,000 credit unions currently operate in the United States. Their technology, he noted, is long overdue for a meaningful overhaul. “We know the credit unions are really hurting and want to adopt AI but have no idea how to do it,” Basu Trivedi said.
He also compared the LOS to an ERP or CRM, highlighting that it is just as vital to daily operations. Historically, switching from one LOS to another has been extremely difficult. However, Fuse promises a much smoother transition — a claim that resonates strongly with investors tracking the AI-native enterprise software space.
The $5M Rescue Fund for Credit Unions
Breaking Free From Legacy Contracts
One of the biggest barriers credit unions face is the cost of exiting existing vendor contracts. To address this directly, Fuse has allocated $5 million toward a program called the “rescue fund.” Through this initiative, the first 50 qualifying credit unions receive free access to the Fuse platform until their current contracts with legacy LOS vendors expire.
Not a Marketing Stunt — A Real Financial Commitment
Klaric is clear that this is not a promotional gimmick. Many credit unions simply cannot afford to pay two vendors simultaneously. Therefore, the rescue fund removes the financial risk of switching entirely. This approach shows Fuse’s confidence in its product and its genuine commitment to helping community lenders modernize.
Why Credit Unions Are the Right Target
Serving the American Middle Class
Klaric believes strongly in the mission behind Fuse. Credit unions primarily serve working and middle-class Americans — people who depend on fair, affordable lending. However, these institutions have long been underserved by the technology industry.
“Credit unions and smaller financial institutions have everything required to win. They have local presence, local focus, and great member experience. The only thing they really don’t have is the right technology,” Klaric explained.
A Large and Underserved Market
With more than 4,000 credit unions across the country, the total addressable market is substantial. Furthermore, Fuse already counts over 100 customers, demonstrating early traction and product-market fit. This growth signals that credit unions are actively seeking modern alternatives to their aging systems.
Who Are Fuse’s Competitors?
Fuse is not the only startup building an AI-powered LOS. Notably, it competes with Casca and Glide in the emerging AI-native lending infrastructure space. On the legacy side, Fuse aims to displace publicly traded nCino and private-equity-owned MeridianLink — both of which currently dominate the market.
However, Fuse differentiates itself through faster deployment, an AI-first architecture, and its unique rescue fund model. These advantages may give the startup a meaningful edge as more credit unions look to modernize.
What This Means for the Future of Fintech
Fuse represents a broader trend reshaping financial services: AI-native platforms replacing decades-old enterprise software. Just as AI-powered ERP startups are targeting general ledger systems, Fuse is targeting the lending core. The implications extend beyond credit unions — any lender relying on legacy infrastructure faces the same mounting pressure to modernize.
Moreover, the startup’s focus on community financial institutions reflects a growing recognition that fintech innovation should reach beyond Wall Street. By empowering credit unions with cutting-edge tools, Fuse aims to level the playing field for the institutions that matter most to everyday Americans.
